Malaysian court orders Najib to enter defense in his 2nd graft trial linked to 1MDB scandal

KUALA LUMPUR, Malaysia (AP) — Malaysia's High Court on Wednesday ordered imprisoned former Prime Minister Najib Razak to enter a defense in his second corruption trial over the multibillion-dollar looting of the 1MDB state investment fund.

Najib set up the 1Malaysia Development Berhad state fund shortly after taking power in 2009 to promote economic development, but the fund amassed billions in debt. Investigators allege more than $4.5 billion was stolen from the fund and laundered by his associates to finance Hollywood films and extravagant purchases.

The prosecution established its case on four charges of abuse of power to obtain over $700 million from the fund that went into Najib's bank accounts between 2011 and 2014, and 21 counts of money laundering involving the same amount, trial judge Collin Lawrence Sequerah said Wednesday.

He said evidence showed Najib had a vested interest in 1MDB, and his pivotal role in all relevant transactions that eventually plunged the fund into debt. Testimony by witnesses also contradicted Najib's claim that the funds in his bank accounts were a donation from the Saudi Arabia royal family, the judge said.

The court called on Najib to make his defense, with the trial set to resume Dec. 2. Calm in a blue suit throughout the proceedings, Najib, 71, told the court he would testify under oath.

Defense lawyer Mohamed Shafee Abdullah told reporters that Najib was disappointed with the court ruling.

“We are not giving up and we are going to fight this case," he added.

The 1MDB scandal upended Najib's government and he was defeated in the 2018 election. He faces a slew of legal cases and started serving time in 2022 after losing his final appeal in his first graft case linked to 1MDB.

Najib's current trial began in August 2019. It ties him directly to the scandal and involved 50 witnesses testifying over more than 230 days of hearing.

On Oct. 24, Najib issued a rare apology for the scandal “under his watch” but reiterated his innocence.

Najib faces up to 20 years in prison for each count of abuse of power and up to five years for each of the money laundering charges. In addition, Najib still has a pending case involving a criminal breach of trust and another money laundering trial. His wife Rosmah Mansor and other senior government officials also face corruption charges.